Foreclosure Fiasco Trail Leads to Washington: Jonathan Weil

http://www.bloomberg.com/news/2010-10-14/foreclosure-fiasco-s-trail-leads-to-washington-jonathan-weil.html

See why Ben wants to make this go away?
Because his ass was continuously lying through his teeth about it, as well as covering it up.
And since JP Morgan as well as Goldman Sach's turned into a depository in 2008, only the FED was supposed to be auditing the accounting practices, so it's not like Ben can actually say we didn't know what they were doing, because BEN KNEW and is now caught in the cover up.
He needs to be fired ....now
AS WELL AS LITTLE TRANSPARENT TIMMY
I'm pretty sure the constitution of the United States calls what they have been doing
A high act of Treason.

Regulators’ Role

Now let’s look at the bigger picture. Where were the banking regulators while all this mischief was going down? For years the leaders of the Federal Reserve and the Office of the Comptroller of the Currency, among others, have been assuring the public they have onsite examiners and supervisors at all of the country’s largest banks. Before IndyMac was seized, its primary regulator had been the Office of Thrift Supervision.

Yet there’s no sign these agencies did anything to stop any of these institutions from treating the country’s courts so contemptuously. Perhaps the regulators were clueless. Or maybe they knew there was a problem and decided to let the banks run wild in the interest of keeping their foreclosure mills humming.

Whatever the case, they let the banking industry deal another huge, self-inflicted blow to its reputation. That’s the sort of damage regulators are charged with preventing, as part of their mission to preserve public confidence in the financial system. And to think Congress just gave the banking regulators, including the FDIC, even more authority under the Dodd-Frank Act. The more they fail, the more power they get.

Shady Tactics

Bankers Ignored Signs of Trouble on Foreclosures

http://finance.yahoo.com/news/Bankers-Ignored-Signs-of-nytimes-2833356369.html?x=0&sec=topStories&pos=7&asset=&ccode=

So federal regulators knew to and never chose to question the legality of what the banks were doing?

But interviews with bank employees, executives and federal regulators suggest that this mess was years in the making and came as little surprise to industry insiders and government officials. The issue gained new urgency on Wednesday, when all 50 state attorneys general announced that they would investigate foreclosure practices. That news came on the same day that JPMorgan Chase acknowledged that it had not used the nation’s largest electronic mortgage tracking system, MERS, since 2008.

That system has been faulted for losing documents and other sloppy practices.

The root of today’s problems goes back to the boom years, when home prices were soaring and banks pursued profit while paying less attention to the business of mortgage servicing, or collecting and processing monthly payments from homeowners.

Banks spent billions of dollars in the good times to build vast mortgage machines